Clause 19

by inserting, immediately after paragraph (f) of subsection (3), the following paragraph:“(fa)where the transferor is an insurer licensed under the Insurance Act (Cap. 142), whether guaranteed policy moneys in relation to any policy should be adjusted upon the proposed transfer so as to achieve an orderly resolution of the transferor;”;

by inserting, immediately after the words “Where the transferee” in subsection (7), the words “is to carry on the whole or part of the significant business of the transferor, and”;

by deleting paragraph (b) of subsection (8) and substituting the following paragraph:“(b)no deed, bond, agreement or other arrangement subsisting immediately before that date —

which relates to the business (or any part of the business); and

to which the transferor is a party,is considered terminated by reason only of the transfer, but each of these continues in full force and effect, and is enforceable by or against the transferee (as the case may be), as from that date, as if the transferee had been named in it or had been a party to it instead of the transferor; and”;

by inserting, immediately after subsection (8), the following subsections:“(8A) Subsection (8)(b) does not apply to a contract of employment.(8B) To avoid doubt, this section does not affect the operation of section 18A of the Employment Act (Cap. 91).”; and

by inserting, immediately after subsection (9), the following subsection:“(9A) Where the transferor is an insurer licensed under the Insurance Act and guaranteed policy moneys under a policy have been adjusted under the certificate —

the policy owner or claimant continue to have recourse against the transferor for the difference between the original guaranteed policy moneys and the adjusted guaranteed policy moneys; and

any agreement or other arrangement mentioned in subsection (8)(b) has effect as if the guaranteed policy moneys have been so adjusted.”.